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Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Feb 11, 2015 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 1
    Q4 2014 Earnings and 2015 Capital Program February 11, 2015
  2. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 2
    Financial and Operating Highlights Q4 2014 adjusted income: 116 MM, or 0.80 per diluted share1 Q4 2014 production: 201 MBOEPD from continuing operations (reflects Barnett Shale and Hugoton divestitures as discontinued operations)…
  3. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 3
    Financial and Operating Highlights (cont.) Northern Spraberry/Wolfcamp horizontal drilling Placed 36 Wolfcamp Shale wells (A, B and D intervals) on production in Q4 o For each interval, Q4 wells are outperforming the average of all…
  4. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 4
    2015 Outlook In response to the current low oil price environment and reduced margins, Pioneer is significantly reducing spending and is focusing on optimizing returns, capital efficiency and production by high-grading drilling…
  5. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 5
    2015 Outlook (cont.) Forecasting 2015 annual production growth from continuing operations of 10%+ based on 1.85 B capital budget and high-graded drilling program Growth primarily first-half weighted with Q4 2015 production essentially…
  6. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 6
    2015E Capital Spending and Cash Flow1 Capital program of 1.85 B Drilling Capital: 1.6 B 1,050 MM northern Spraberry/Wolfcamp (65% of total) o 735 MM for horizontal drilling program Sensitivity to Commodity Prices ( MM) o 20 MM for…
  7. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 7
    Forecasting 2015 Production Growth Range of 10%+1 200+ MBOEPD2 182 MBOEPD Prepared to add rigs if margins improve 201 192-197 186 176 166 155 Impacted by severe weather in Q1 and FY ethane rejection2 2013 Q1 Q2 Q3…
  8. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 8
    Pioneers Q4 2014 Northern Spraberry/Wolfcamp Program Placed 36 horizontal Wolfcamp Shale wells on production during Q4 Pioneers Northern Spraberry/Wolfcamp Acreage Q4 Wolfcamp POPs Interval 20 Wolfcamp B 11 Wolfcamp A 2 5 Wolfcamp…
  9. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 9
    Horizontal Wolfcamp Production Data: Q4 vs. Historical Wells Wolfcamp A Wolfcamp B Historical wells (33) Historical wells (12) avg. lateral: 7,700 feet avg. lateral: 6,950 feet 80 Q4 wells (11) 80 Cumulative Production (MBOE)…
  10. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 10
    Northern Spraberry/Wolfcamp: High-Grading Drilling Activity in 2015 Reducing horizontal rig count to 6 rigs by the end Pioneers Northern Spraberry/Wolfcamp of February 2015 Drilling Areas High-grading drilling activity to areas and…
  11. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 11
    Southern Wolfcamp JV: High-Grading Drilling Activity in 2015 Reducing horizontal rig count to 4 rigs by the end of February Pioneers Southern Wolfcamp JV Area 2015 Drilling Areas High-grading drilling activity to areas and intervals…
  12. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 12
    Continuing to Grow Spraberry/Wolfcamp Production Spraberry/Wolfcamp Net Production (MBOEPD)1 119+ MBOEPD2,3 69 horizontal wells placed on production in Q4 43 in northern acreage and 26 in southern Wolfcamp Prepared to add rigs if…
  13. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 13
    Field Infrastructure Tank Batteries & Gas Processing Tank Batteries / Saltwater Disposal DL Hutt Tank Battery Slowing pace of construction of new large-scale tank batteries and saltwater disposal facilities in response to the slowdown…
  14. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 14
    Slowing Down Water Project Construction Plans originally called for the initial phase of Pioneers field-wide water transport system to commence in 2015 Feeder line from Midland As a result of the slowdown in Pioneers drilling…
  15. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 15
    Eagle Ford Shale JV: High-Grading Drilling Activity in 2015 Reducing horizontal rig count to 6 rigs by the JV Acreage end of February Central Gathering Point Pipeline Infrastructure High-grading drilling activity to areas with the 6…
  16. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 16
    Continuing to Grow Eagle Ford Shale Production Eagle Ford Shale Net Production (MBOEPD)1 50+ MBOEPD2 Eagle Ford Shale net production of 49 MBOEPD in Q4 46 MBOEPD Prepared to add rigs if margins improve Placed 30 liquids-rich wells…
  17. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 17
    Optimizing Returns in a Lower Oil Price Environment Cost Reductions Aggressively soliciting cost reductions from suppliers and service companies, including: Materials (e.g. casing and tubing, drilling mud, chemicals and guar) Freight…
  18. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 18
    Q4 2014 Earnings Summary Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 431 2.91 Noncash mark-to-market (MTM) derivative gains (570 MM before tax) (364) (2.45) Adjusted income excluding noncash MTM…
  19. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 19
    Price Realizations1 Realized Prices 95.87 90.88 92.38 90.82 66.64 32.82 30.18 30.24 28.44 4.75 4.33 3.79 3.60 18.50 3.39 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Oil…
  20. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 20
    Production Costs (per BOE)1 14.30 Q4 2014 production costs 13.90 13.39 13.17 13.61 increased slightly compared to Workovers 0.76 0.59 0.55 0.63 0.65 Q3 2014 Production & 3.68 3.52 LOE increased primarily due to Ad Valorem 3.11…
  21. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 21
    Liquidity Position (12/31/14) Net debt (net of cash balance of 1,025 MM): 1.6 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 16% Maturities and Balances1 2016 2017 2018 2020 2022 2028 455 MM…
  22. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 22
    Q1 2015 Guidance Guidance Daily Production (MBOEPD) 192 197 Production Costs (/BOE) 13.25 15.25 Exploration & Abandonment ( MM) 25 35 Drilling and Acreage 10 Personnel and Seismic 25 DD&A (/BOE) 16.00 18.00 G&A ( MM) 78 83…
  23. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 23
    Pioneers Year-End 2014 Proved Reserves1 Added 177 MMBOE from the drillbit, or 239% of full- year production, at a drillbit F&D cost of 19.65 per BOE2 Reflects significant drilling campaigns in horizontal Spraberry/Wolfcamp Shale and…
  24. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 24
    2014 Drilling Capital1 Millions 974 897 730 612 Q1 '14 Q2 '14 Q3 '14 Q4 '14 1) Excludes acquisitions, asset retirement obligations, capitalized interest, geological and geophysical administrative costs and capital…
  25. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 25
    Pioneers Production By Commodity By Area Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Spraberry/Wolfcamp Oil (BOPD) 52,957 58,307 57,893 66,425 76,894 NGL (BOEPD) 16,251 16,693 19,754 21,734 23,956 Gas (MCFD) 65,863 66,770 83,368 86,412 87,630…
  26. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 26
    Oil and Gas Revenue1 Millions 967 938 890 791 804 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 28 1) All periods presented have been restated to exclude discontinued operations associated with Alaska, Barnett Shale and Hugoton…
  27. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 27
    Open Commodity Derivative Positions as of 2/6/2015 Oil Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 Swaps WTI (BPD) 82,000 82,000 82,000 82,000 - NYMEX WTI Price (/BBL) 71.18 71.18 71.18 71.18 - Three Way Collars (BPD)1,2 10,000 15,000…
  28. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 28
    Open Commodity Derivative Positions as of 2/6/2015 Ethane Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 Swaps (BPD)1 3,278 5,000 5,000 5,000 4,000 Mont Belvieu Swap Price (/BBL) 7.83 7.83 7.83 7.83 12.29 Propane Q1 2015 Q2 2015 Q3 2015…
  29. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 29
    Open Commodity Derivative Positions as of 2/6/2015 Gas Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 Swaps - (MMBTUPD) 20,000 20,000 20,000 20,000 70,000 NYMEX Price (/MMBTU)1 4.31 4.31 4.31 4.31 4.06 Three Way Collars (MMBTUPD)1,2…
  30. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 30
    General & Administrative Costs1 Millions 96 89 14 81 82 81 15 Noncash 15 14 16 Q4 Q1 Q2 Q3 Q4 2013 2014 2014 2014 2014 32 1) All periods presented have been restated to exclude discontinued operations associated with…
  31. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 31
    Interest Costs Millions 47 46 46 45 45 4 4 5 4 4 Noncash Q4 Q1 Q2 Q3 Q4 2013 2014 2014 2014 2014 33
  32. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 32
    Exploration & Abandonments1 ( Millions) Drilling, Acreage & Other Abandonments 79 2 Geological & Geophysical Seismic 4 Personnel & Other 14 4th Quarter Total 97 1) Excludes discontinued operations associated with…
  33. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 33
    Income Taxes Attributable to Continuing Operations Quarter Ended December 31, 2014 ( Millions) Current tax provision Deferred tax provision 237 Income tax provision 237 35
  34. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 34
    Supplemental Earnings Per Share Information The Company uses the two-class method of calculating basic and diluted earnings per share. Under the two-class method of calculating earnings per share, GAAP provides that share- and unit-based…
  35. Q4 2014 Earnings and 2015 Capital Program – Pioneer Natural Resources Co. – slide 35
    Supplemental Non-GAAP Financial Measures Adjusted income excluding noncash MTM derivative gains and adjusted income excluding noncash MTM derivative gains and unusual items, as presented in the Financial and Operating Highlights slide and…

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